An Analysis of Office Market Rents: Some Empirical Evidence
John L. Glascock, Shirin Jahanian, C. F. Sirmans
Abstract
John L. Glascock, Shirin Jahanian, C. F. Sirmans
Abstract
This paper provides an empirical analysis of office building rents using data for a five‐year period in a medium‐ sized city. The results indicate that rent levels respond to various factors in the expected manner: rents vary systematically across classes of buildings and locations, overall market conditions have a significant impact on rents, and contract variations are associated with rent differences. We also present the first evidence at the building level on the rent‐vacancy adjustment process. The results show a significant relationship between rent changes and vacancies.
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This paper provides an empirical analysis of office building rents using data for a five‐year period in a medium‐ sized city. The results indicate that rent levels respond to various factors in the expected manner: rents vary systematically across classes of buildings and locations, overall market conditions have a significant impact on rents, and contract variations are associated with rent differences. We also present the first evidence at the building level on the rent‐vacancy adjustment process. The results show a significant relationship between rent changes and vacancies.
Key concepts: Economic rent, Economics, Empirical evidence, Rent-seeking, Microeconomics, Labour economics, Law, Politics